The rapidly growing artificial intelligence (AI) market fueled a surge in the price of many AI-focused stocks. One of these is SoundHound AI (NASDAQ: SOUN). Over the past 12 months, its stock skyrocketed an eye-popping 848% through Jan.

SoundHound AI (NASDAQ: SOUN) stock is seeing a significant pullback in Friday's trading. The company's share price was down 7.3% as of 11 a.m. ET amid a 1.4% decline for the S&P 500 index and a 1.7% pullback for the Nasdaq Composite index.

In SoundHound AI's conference call, management made the bold projection that its revenue would double in 2025. Additionally, it expects to reach EBITDA profitability by the end of 2025, which is a key milestone in achieving net income profitability. These projections ignited a massive run-up in SoundHound AI's stock, but is it still worth buying?

SoundHound AI Inc (SOUN) stock saw a decline, ending the day at $15.02 which represents a decrease of $-2.96 or -16.46% from the prior close of $17.98. The stock opened at $16.58 and touched a low of $14.

SoundHound's growth is stunted amid competition and losses. Learn why SOUN stock may drop as AI-driven hype fades and fundamentals prevail.

While the business is growing, SoundHound AI has a low revenue volume and no profits. Read why I have downgraded SOUN stock to a Sell.

Investors and traders looking for an opportunity to “Buy the Dip” on SoundHound shares should maintain a close watch on the $15 price. This price represents the next “psychological” trade level for the stock, followed by $12.5 which is where SoundHound’s bullish 50-day moving average resides.

SoundHound AI Inc.'s (NASDAQ: SOUN) shares are trading lower today potentially from continued momentum due to sector-wide challenges.

While SoundHound AI's big drop may tempt value hunters, a potentially smarter proposition calls for a wager on rising volatility.

Want to know where SoundHound AI stock is heading? For reference, a company's gross profit margin is calculated by subtracting the cost to produce its goods from revenue and then dividing that number by the overall sales figure.

There may not be a hotter stock heading into 2025 than SoundHound AI ( SOUN 2.28%). SoundHound AI rose 836% in 2024, making it one of the best-performing stocks in the market. Just a few weeks ago, it was up over 1,000%, but a pullback to end the year took away some of those gains.

We recently published a list of 15 AI Stocks That Skyrocketed in Q4. In this article, we are going to take a look at where SoundHound AI, Inc.